|
on Microeconomic European Issues |
| By: | Marzi, Marta Serena Liliana; Marini, Alessandra; Cherchi, Ludovica; Cenedese, Francesco |
| Abstract: | Across European Union (EU) countries, the institutional design of Minimum Income (MI) programs varies widely in terms of the benefits and services provided to recipients, despite significant convergence toward a similar MI model and shared common approaches. This discussion paper investigates the delivery of social inclusion pathways, i.e., non-monetary support components to foster MI recipients’ social inclusion and highlights common challenges and good practices across eight EU case study countries (Belgium, France, Germany, Greece, Italy, Portugal, Spain, and Sweden). The paper shows that while some countries prioritize labor activation for workforce reintegration of MI recipients, others aim for broader social inclusion, recognizing the challenges in integrating such recipients into the labor market due to their complex needs. Moreover, the paper examines how the social inclusion pathway and case management interventions in MI programs affect recipient’s welfare within poverty-targeted programs. It notes the lack of evidence on the effectiveness and impact of social inclusion pathways within MIs and mentions ongoing evaluations in Spain, Italy, and France to address this gap. |
| Date: | 2024–07–30 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:hdnspu:193099 |
| By: | Charles Yuji Horioka; Luigi Ventura |
| Abstract: | In this paper, we analyze the saving motives of European households using micro-data from the Household Finance and Consumption Survey (HFCS), which is conducted by the European Central Bank. We find that the rank ordering of saving motives differs greatly depending on what criterion is used to rank them. For example, we find that the precautionary motive is the most important saving motive of European households when the proportion of households saving for each motive is used as the criterion to rank them but that the retirement motive is the most important saving motive of European households if the quantitative importance of each motive is taken into account. Moreover, the generosity of social safety nets seems to affect the importance of each saving motive, with saving for the retirement motive being less important in countries with generous public pension benefits and saving for the precautionary motive being less important in countries with generous health systems. These findings suggest that the retirement motive and the precautionary motive are the dominant motives for saving in Europe partly because social safety nets are not fully adequate. Our finding that saving motives that are consistent with the selfish life-cycle model as well as saving motives that are consistent with the altruism model are important in Europe implies that the two models coexist in Europe, as is the case in other parts of the world. However, our finding that the retirement motive, which is the saving motive that most exemplifies the selfish life-cycle model, is of dominant importance in Europe strongly suggests that this model is far more applicable in Europe than is the altruism model. Moreover, our finding that the intergenerational transfers motive, which is the saving motive that most exemplifies the altruism model, accounts for only about one-quarter of total household wealth in Europe provides further corroboration for this finding. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:dpr:wpaper:1251 |
| By: | Glasenapp, Sebastian; Jochem, Dominik |
| Abstract: | As part of the present investigation, a comprehensive survey of all potential manufacturers of wood-based panels2 in Germany was conducted. The aim was to gather detailed information on production capacities, production volumes, and raw material usage. The response rate of the survey was 65.7 %, with a capture rate of 90.9 %. Standardized imputation procedures were used to complement missing data, utilizing both external sources and the available survey data. The results of the study indicate that in 2021, wood-based panels were manufactured at 22 locations in Germany, comprising a total of 28 production lines. The total production capacity of the wood-based panel industry in Germany amounted to over 12.6 million cubic meters. The average capacity utilization rate was 94 %. The production of particleboard showed a slight decrease since 2010, while the production of fiberboards (LDF/MDF/HDF) and OSB remained relatively stable. The consumption of fiberwood remained stable in 2021 compared to the previous year. The dominant raw materials were sawmill residues and industrial wood. The import share in fiberwood consumption was only 1.8 %. The present study provides a current insight into the situation of the German wood-based panel industry regarding capacities, production and raw material consumption and contributes to the scientific understanding and analysis of developments in this sector. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:jhimwp:344501 |
| By: | Alistair Milne |
| Abstract: | Supply disruptions, in particular the reduced supply of gas following the Russian invasion of Ukraine, has triggered the major energy crisis across all of Europe. This threatens a severe economic downturn with substantially reduced real incomes, widespread business closures and – especially in the UK with its heavy reliance on natural gas for domestic heating – many households pushed into 'fuel poverty', choosing between adequate nutrition and heating for their homes. This note discusses the economic mechanisms driving this crisis and the policy tools available to address it. The principal message is that in a crisis such as this quantities matter. The new UK government is introducing a near complete suspension of price mechanism in domestic energy markets, freezing both household and wholesale prices. Government across Europe will take similar measures. These seem necessary to protect households and businesses. But they are only sticky plasters. There is a near-binding constraint on the overall supply of gas in Europe. Without prices allocating supply, further measures are needed to decide who gets how much gas. So, the policy response must address quantities, turning to administrative management of the physical flows of gas, to secure supply and reduce demand (through public appeal, voluntary proposed consumption reductions and where unavoidable rationing). In practical terms this means, going beyond the price caps (i) negotiating, bilaterally, with Norway as the principal supplier of gas to Europe to ensure energy security, obtaining allocations of gas at below elevated wholesale market prices; and (ii) within the resulting envelope of supply, implement standing plans e.g. in the UK those of BEIS and the National Grid, for allocating limited energy resources in a supply crisis. From the policies announced and discussed so far it appears that the UK government, and its counterparts across Europe, believe that the physical deficit of energy in Europe can be closed by spending unlimited amounts of money. But the underlying problem is a shortage of physical supply. Spending more money, without controlling quantity, drives prices ever higher. This policy stance is reminiscent of the Major government in Black Wednesday 1992. Like that policy it is not sustainable. Turning to administrative management of the quantities of gas deals directly with the supply deficit and will bring the cost of energy closer to normal levels. This is not without economic costs. Low priority consumers will consume less gas than they would like to purchase. Imports of liquid natural gas LNG must still be paid for at a premium price. But much less money than currently announced is needed for protecting households and businesses. No need to burden the taxpayer. |
| Date: | 2022–09 |
| URL: | https://d.repec.org/n?u=RePEc:nsr:niesrp:35 |
| By: | Roussel, Yannick; Audi, Marc |
| Abstract: | The paper delves into the intricate relationship between economic growth, tourism arrivals, and climate change, focusing specifically on the European economy over the period 1990-2019 using panel data analysis. The empirical framework examines the interplay between these variables and sheds light on their implications for environmental sustainability and economic development. The econometric analysis reveals several noteworthy findings. Firstly, the equation assessing economic growth underscores the positive correlation between tourist arrivals, energy consumption, carbon dioxide emissions, openness to trade, and economic growth. These results align with the prevailing literature, highlighting the multifaceted drivers of economic expansion in the context of tourism and trade. However, the study diverges from conventional wisdom by challenging the notion of a strictly positive correlation between tourism and climate change. While previous research predominantly suggests a positive association, our findings suggest an alternative hypothesis, wherein tourist arrivals exhibit a negative correlation with climate change indicators. This nuanced perspective underscores the complex dynamics at play and emphasizes the need for further investigation into the environmental implications of tourism. Furthermore, the application of fixed effects and GMM-system techniques provides additional insights into the determinants of carbon dioxide emissions. Income per capita and energy consumption emerge as significant drivers of CO2 emissions, highlighting the role of economic prosperity and energy consumption patterns in shaping environmental outcomes. Interestingly, tourism arrivals and squared income per capita demonstrate a negative correlation with CO2 emissions, suggesting that higher levels of tourism and income per capita may mitigate environmental pressures. Additionally, the analysis of tourism arrival determinants reveals that income per capita, openness to trade, and energy consumption exert a positive effect on tourism arrivals. These findings underscore the role of economic prosperity, trade openness, and energy infrastructure in driving tourist inflows, highlighting the interconnectedness of economic and tourism dynamics. The paper contributes to the growing body of literature on the nexus between economic growth, tourism, and climate change, offering valuable insights for policymakers and stakeholders. By elucidating the complex relationships between these variables, the study informs evidence-based policy interventions aimed at promoting sustainable tourism practices and mitigating the environmental impact of economic growth. Ultimately, a holistic approach that balances economic development objectives with environmental stewardship is essential for fostering long-term prosperity and sustainability in the European economy and beyond. |
| Keywords: | Carbon Dioxide Emissions, Energy Consumption, GMM-System Techniques, Income Per Capita |
| JEL: | C33 O13 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121529 |
| By: | Hahn, Nadine |
| Abstract: | I develop a general framework for markup and markdown estimation that allows for profit sharing along value chains without making assumptions on conduct between vertically related firms. I derive the conditions under which the markup and markdown estimates relate to the firms' equilibrium bargaining weights. To account for vertical and horizontal product differentiation in the production function estimation, I include plant-level prices and employ car characteristics as demand-based quality controls. Between 2002 and 2018, the European car manufacturers' margins on their input and product markets combined were stable around 10% to 15% on average. The manufacturers' share of the margin on the input market, however, depends on the car segments in which they produce. The suppliers' share depends negatively on the variety of their product portfolio and depends positively on their relationship intensity to car manufacturers. The analysis shows that the manufacturers' bargaining weights decreased during crisis years, such as the financial crisis in 2007 or the dieselgate scandal in 2015. |
| Keywords: | Market Power, Markups, Markdowns, Production Approach, Car Industry, Vertical Chains |
| JEL: | D22 L13 L14 L62 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:300675 |
| By: | Victor Gay (IAST - Institute for Advanced Study in Toulouse, TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Why are some countries so much richer than others today? This course explores the historical origins of modern economic growth and global economic inequality across countries. After a brief introduction of the field of economic history, we will study when and where modern economic growth emerged, with a particular focus on the Great Divergence and the Industrial Revolution in Western Europe. The course will however cover other settings, such as China, Japan, and Southern Asia (except the United States). Then, we will investigate the factors that can explain these historical patterns, looking successively at the role of institutions, culture, and geography. Finally, we will discuss various issues that come along with modern economic growth in historical perspective such as pollution and global pandemics. |
| Date: | 2024–01–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04650773 |
| By: | Palenzuela, Diego Rodriguez; Saiz, Lorena; Stoevsky, Grigor; Tóth, Máté; Warmedinger, Thomas; Grigoraș, Veaceslav |
| Abstract: | The monitoring and analysis of the business cycle is a central element of inputs to monetary policy decision-making. This report contributes to the analysis of business cycles in the euro area in three dimensions. First, in terms of business cycle dating, it proposes automated procedures to characterise the business cycle situation of the euro area and its main components, across countries and sectors. Second, it investigates how business cycle synchronisation has evolved over the last 20 years. Third, it analyses business cycle drivers from several perspectives, including the financial and international dimension, interconnectedness, demand and supply. It also features an early analysis of the economic implications of the COVID-19 pandemic. Rather than reaching strong conclusions on the history of the euro area business cycle, the primary aim of the report is to promote sound methods and approaches that are part of ongoing enhancements of the analytical infrastructure designed to analyse hard-to-ascertain questions on the nature and characteristics of euro area business cycle dynamics. JEL Classification: C10, E32, E37 |
| Keywords: | business cycle dating, characteristics, drivers, synchronisation |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbops:2024354 |
| By: | López, Lucia; Odendahl, Florens; Parrága, Susana; Silgado-Gómez, Edgar |
| Abstract: | This paper uses a Bayesian Structural Vector Autoregressive (BSVAR) framework to estimate the pass-through of unexpected gas price supply shocks on HICP inflation in the euro area and its four largest economies. In comparison to oil price shocks, gas price shocks have approximately one-third smaller pass-through to headline inflation. Country-specific results indicate gas price increases matter more for German, Spanish and Italian inflation than for French inflation, hinging on the reliance on energy commodities in consumption, production, and different electricity prices regulation. Consistent with gas becoming a prominent energy commodity in the euro area, including time-variation through a time-varying parameter BVAR demonstrates a substantially larger impact of gas price shocks on HICP inflation in recent years. The empirical estimates are then rationalized using a New Keynesian Dynamic Stochastic General Equilibrium (NK-DSGE) model augmented with energy. In the model, the elasticity of substitution between gas and non-energy inputs plays a critical role in explaining the inflationary effects of gas shocks. A decomposition of the recent inflation dynamics into the model structural shocks reveals a larger contribution of gas shocks compared to oil shocks. JEL Classification: C11, C32, E31, Q41 |
| Keywords: | Bayesian VARs, inflation, natural gas and oil shocks, new Keynesian DSGE |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242968 |
| By: | Ozili, Peterson K |
| Abstract: | This study empirically examines the effect of economic policy on sustainable development using annual data for 22 countries from 2011 to 2018. The study also proffers some economic policy strategies for increasing the level of sustainable development. In the empirical analysis, a sustainable development index was constructed comprising of SDG proxy indicators: healthcare expenditures to GDP ratio (SDG3), percentage of people using safely managed drinking water services (SDG6) and the share of renewable energy to final total energy consumption (SDG7). The results show that the economic policy index has a significant positive effect on the sustainable development index particularly in non-European countries and in developing countries and a negative effect in European countries and developed countries. Changes in monetary policy, fiscal policy and regulatory policy have a significant impact on the level of sustainable development. Expansionary monetary policy via increase in broad money to GDP ratio increases the attainment of SDG6 while contractionary monetary policy via increase in central bank interest rate increases the attainment of SDG7. Expansionary fiscal policy via increase in consumer spending leads to the attainment of SDG3 and SDG7 but it adversely affects the attainment of SDG6. Effective regulatory policy via increase in institutional governance quality increases the attainment of SDG3 and SDG6. There is uni-directional causality between economic policy and sustainable development. Monetary policy and regulatory policy also have a uni-directional relationship with sustainable development, implying that changes in monetary and regulatory policies cause changes in the level of sustainable development. This study is the first to empirically examine the contribution of economic policy to sustainable development using composite indices. |
| Keywords: | sustainable development, economic policy, monetary policy, fiscal policy, regulatory policy, strategies |
| JEL: | E52 E62 E63 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121523 |